29 – 31 October 2012
Report of Trade Mission to Nigeria
Alternative Energy Expo
Report of Trade Mission to Nigeria
Alterna...
This report outlines the objective and results of the
Nigeria Alternative Energy Expo 2012 trade
mission as a portion of t...
Executive Summary
Barely a day passes without the news making comment on the
infrastructural developments in the African E...
participants establish the necessary public and private sector contacts to thrive. The five-day
mission include meetings w...
The Nigeria Alternative Energy Expo 2012 is Nigeria’s leading energy Expo. NAEE
2012 took place at the June 12 Cultural Ce...
Objectives of the Mission
South African companeis are considered competitive on quality, efficiency and after-sales
suppor...
product into Nigeria. Based on demand for our products we aim to grow this by 15% year on
year for the next three years.
M...
CED is keen on making local businesses export-ready, ensuring the sustainable development
of the export sector, and boosti...
Programme
Briefing Session – 04 October, 13:00- 15: 00
Prior to the trip, a useful and informative briefing session at Pec...
It was encouraging to see other major Players from like DASOL from China, Inenergy from
Germany, ATEF Group of Companies f...
Conclusion & Outcome
The delegation discuses trade opportunities in areas including solar plant, including Solar,
Biodiese...
“Infrastructure is the lifeblood of economic
development and is critical to Africa’s
transformation. The needs are huge, t...
NAEE in Photos
Edward Rae of Current Automation One on One with the Governor with the delegation
South Africa Delegation O...
Nigeria and South Africa account for one-half of sub-Saharan Africa’s GDP, and are potentially major drivers
of growth for...
Report of Emerging Renewable Energy Companies to Nigeria Alternative Energy Expo 2012
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Report of Emerging Renewable Energy Companies to Nigeria Alternative Energy Expo 2012

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This report outlines the objective and results of the
Nigeria Alternative Energy Expo 2012 trade
mission as a portion of the integrated African
Green Economy Export Development Roadshow
lead by the Southern Africa Alternative Energy
Association and funded by the Department of
Trade and Industry. Market Research Partners
Centre for Export Development investigated and
identified challenges and opportunities in key
markets in Africa.

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  1. 1. 29 – 31 October 2012 Report of Trade Mission to Nigeria Alternative Energy Expo Report of Trade Mission to Nigeria Alternative Energy Expo
  2. 2. This report outlines the objective and results of the Nigeria Alternative Energy Expo 2012 trade mission as a portion of the integrated African Green Economy Export Development Programme lead by the Southern Africa Alternative Energy Association and funded by the Department of Trade and Industry. Market Research Partners Centre for Export Development investigated and identified challenges and opportunities in key markets in Africa and how to fill this gap with South African Products and expertise. This valuable project will be taken forward into subsequent Market studies that will highlights the complexity of the Africa Energy market and the need to focus Renewable energy exports on specific target markets, pricing, distribution and the difficulty of breaking into these Markets. It have been established that there is good potential for exports of South African Renewable energy products into other African market. The Nigerian market is largest, but issues of political complexity and competition are a significant factor.
  3. 3. Executive Summary Barely a day passes without the news making comment on the infrastructural developments in the African Economy. Over the last few years many political and trade missions have been undertaken, not only from South Africa, but from many countries around the globe as they vie for Africa’s attention. In this light, it seemed timely that the South Africa Green Economy community be alerted to the developing opportunities in Africa and begin to nurture new business relationships. Building trust and confidence was the principal aim of the mission. If there is anything to be learned it is that Nigeria is an enormously complex and large market. Understanding and appreciating this trend is the foundation to any successful partnership with role player in the Country. Africa Green economy Export Promotion programme show will increase exporting opportunities for South Africa Renewable Energy manufacturers, Developer, Distributors and Investors and unlock opportunities in the vast African market and develop opportunities that will create new jobs and economic growth for South African industries. "With the DTI’s support for Export and Green Economy, the programme will recruit and grow more Agents, Resellers and Government buyers in Africa who are interested in new Green technologies and equipment suppliers with fast and reliable after sales support. The Green economy Export Promotion Trade Mission to Nigeria offers South African companies a timely and cost-effective way to engage with key stakeholders, government officials and potential partners in an effort to enter the promising Nigerian market. The targeted sectors for potential exports include: Biomass/Waste-to-Energy/Biogas Geothermal Hydropower Wind power Solar power Alternative Housing Engineering Nigeria rank high on Renewable Energy Best Prospects Study which identifies those markets with good potential for exports of renewable energy goods and services. By targeting these markets, the Energy Trade Mission will not only advance the President's Export Initiative and his goal of positioning South Africa as the leading exporter of renewable energy technology, it will also support the DTI’s goal by promoting export opportunities for companies active in the renewable energy sector. With a focus on connecting RSA companies with key players and decision makers in Nigeria, this mission provided critical market information and access to help Chairman SAEEA Mr. Alwyn Smith
  4. 4. participants establish the necessary public and private sector contacts to thrive. The five-day mission include meetings with high-level national government officials, one-on-one meetings with potential partners, Buyers and industry leaders, briefings on the Nigeria markets, site visits, and additional meeting with Ogun State Government on the award of 100 MW project in a basket of energy mix in 20 municipalities in the state. The delegation comprised of 10 RSA companies representing a cross-section of RSA industries that have developed products and services for the renewable energy industry. As Nigeria is not meeting up to a quarter of its energy demand a population of 150 million that has only 4000 Mw on its national grid, the Government has set a renewable energy generation target to increase capacity by 25% by 2020 with abundant natural resources the country is looking for suppliers ,manufacturers and investors in an excellent position to capitalize in the growing market. Nigeria's vision 20-20-20 is to be one of the world's 20 largest economies; consolidate its leadership role in Africa and establish itself as a significant player in the global economic and political arena. " The process of developing the Nigerian Vision 20-20-20 blue print was an all-inclusive participation of over 5,000 Nigerians from all walks of life. If well implemented, the vision will translate to a minimum GDP of $900 billion and a per capita income of $4,000." Dr. ShamsudeenUsman, Minister of National Planning, Federal Republic of Nigeria
  5. 5. The Nigeria Alternative Energy Expo 2012 is Nigeria’s leading energy Expo. NAEE 2012 took place at the June 12 Cultural Centre, Kuto Abeokuta, Nigeria from 29th -31st October 2012. The event featured an impressive line-up of local and international speakers, delegates and exhibitors, who gathered to debate on the new energy future for Africa’s most populous nation. This year’s conference focused on the theme ’Alternative Energy for Increase Capacity and Sustainability. NAEE 2012 took place in partnership with the Renewable Energy Programme of the Ministry of Environment, Energy Commission, The Nigerian National Petroleum Corporation, (NNPC) and National Agency on Science and Engineering and Infrastructure, (NASENI) and SMEDAN as well as numerous other local and multinational organizations, like Renewable Energy and Energy Efficiency Partnership (REEEP), Africa Renewable Energy Alliance, ADB, and World Bank, Clean Energy Business Council from both the public and private sectors. This year event attract more than 4,000 renewable energy power professionals and exhibiting companies, delegated and visitors from all over the World. The objectives of the Nigeria Alternative Energy Expo was to: Create a platform for all stakeholders to network and transfer knowledge and skills. Raise awareness and educate the public about climate change in Nigeria and the World. Showcase both local and international initiatives and technologies that are at the forefront of renewable energy and climate change resilience. Mobilise Nigerians across all sectors to act on climate change in all aspects of their lives. Create a platform for Business, Government and NGO’s to showcase Alternative Energy solutions and climate change initiatives and technologies South African Companies that were part of the mission includes Current Automation, Agama Energy, Solaire Direct Technologies, Black Lite Energy, Calliper Consulting Engineers, Black Jills Energy, EEU Diverse Business Consulting, DV8 and Zepto SA. The Export Development programme offered new and inexperienced exporters free capability assessments, support in visiting potential markets, mentoring from export professional, Export action plans, customised and subsidised training, and ongoing support on how to convert leads to orders. South Africa is committed to expanding business opportunities into new markets, emphasizing on energy-related infrastructure , focusing on renewable energy market. Exhibitions have been identified as a decisive tool to gauge first-hand what the prospective foreign customers need what is already in their market and pricing, what is the competition and how will they react. This project is seen as the first stop of the Renewable Gateway to Africa campaign to be continued in Gaborone, Botswana and Kenya in 2013 2014. About the Expo
  6. 6. Objectives of the Mission South African companeis are considered competitive on quality, efficiency and after-sales support, so we want to concentrate our effort on the larger project developers and owners who have the financial resources to “do the job right.” Below are areas to be marketed aggressively PV, Inverters and sotrage for solar projects. Wind turbines and blades. Solutions for syngas and biogas. Small turbines for wind energy. Renewable energy generation Plants Control and monitoring systems/automation. Emissions control equipment. Heat exchangers and heat recovery boilers for cogeneration or tri-generation. New technologies for municipal waste. In addition, there are opportunities existing for engineering service and consultancy, particularly for larger-scale projects where there is not as yet much local experience. The mission helped participants increase their export potential to the African market by identifying project and sales distribution opportunities in Nigeria’s energy market. As such, the mission will focus on helping South African companies gain market intelligence, create government and business relationships, identify specific projects, and learn about financing tools offered in Nigeria, as well as have discussions regarding additional incentives offered by the Government. The Mission's goals include: Facilitating briefings, meetings and exposure to government officials, private sector, developers and distributors as well as potential in-country partners; Promoting the South Africa renewable energy industry by connecting participants with partners, government entities and financing opportunities; Helping companies receive valuable exposure to the rapidly growing and important, renewable energy market in Africa. Assisting South African businesses increase their international reach, thus, resulting in a greater capacity to increase jobs at home to keep up with demand, whereby furthering the goals of President Zuma’s Job creation Initiative. Participants will attend country briefings, meet with government officials, have specialized one-on-one meetings with in-country partners, participate in meetings with local utilities, and be briefed on the programs and opportunities. Market Share Presently we have less than 10% of the market share for South African renewable energy
  7. 7. product into Nigeria. Based on demand for our products we aim to grow this by 15% year on year for the next three years. Marketing Strategies Our marketing strategies into Sub Saharan Africa will continue to be focused around the partnerships and preferred dealers to be put in place. Customers in these markets will be reached through follow up calls, by catalogues being mailed out and by electronic mailings. Regular exhibitions in these countries market share and sales objectives we hope to achieve by regular visits, Local media, PR and Publicity will also be drawn on to create awareness in these markets. About SAAEA The Southern African Alternative Energy Association (SAAEA) represents and actively promotes Renewable Alternative Energy Solutions in our region. Its focus is the whole industry, rather than one sector. Wind, Solar, Biomas, Biogas, Bio Fuels, Green Products, Energy Saving, Alternative Energy, Energy from Waste, Fuel Cell Technologies etc. The SAAEA advocate policy development on behalf of our members at decision making government level. We also promote understanding of the industry and its potential through tools such as industry events, forums, conferences, newsletters and publications, our objective is to provide borderless access to the information that can affect today's clean energy industries as much as tomorrow's world. About the DTI The Department of Trade and Industry (the dti) provides leadership in South Africa's trade policy, to promote economic growth and development, industrial upgrading and diversification, poverty reduction through sustainable employment and job creation. Thedti further aims to build an equitable multilateral trading system that facilitates development, and strengthens trade and investment links with key economies. In particular, the dti seeks to foster African development, through regional and continental integration and development, aligned to the objectives of the New Partnership for Africa's Development (Nepad). About Centre for Export Development Centre for Export Development focuses on promoting a pro-export business environment that leads to increase exports, poverty reduction and economic growth. By securing and offering technical and financial assistance, CED works at sustaining and building micro, small and medium enterprises and non-traditional exporters, recognizing that they form the South Africa economy’s backbone. Centre for Export Development
  8. 8. CED is keen on making local businesses export-ready, ensuring the sustainable development of the export sector, and boosting South Africa’s overall export performance. The agency scouts out and packages opportunities for trade with overseas markets and opportunities for local and foreign direct investment. Lessons Learned The one lesson we could take away from this year’s expo is the need to make appointments with companies one wishes to make a contact with, well in advance, to receive maximum reception. Stalls are busy, and those with appointments receive attention first. We unfortunately got the initial ball rolling with RSA embassy and DTI in Nigeria only 3 weeks before the mission, and that, in between projects left us pressed for time to schedule more appointments. We will also be cautious with public holidays as they are not same in Africa we encountered 2 day before the Expo in Nigeria. Did you know? Africa is home to seven of the 10 fastest growing economies, yet 70% of the working-age population is unemployed. 40 countries in Africa are now involved in exploration for production of minerals and oil and gas. 65% of Africa's +1 billion people (expected to reach 2 billion by 2050) are below the age of 35, making Africa the most youthful continent. Only a quarter of Africans have access to electricity compared with 50% of Asians and 80% of people in the Middle East and Latin America. The number of mobile subscribers doubled from 2008 to 2010 to more than 500 million. Two billion people – a third of the world’s population – still do not have any access to modern sources of energy. Almost 700 million of these people are in Africa.
  9. 9. Programme Briefing Session – 04 October, 13:00- 15: 00 Prior to the trip, a useful and informative briefing session at Pecado da Gula 39 Pierre Road, Honeydew, Gauteng hosted by SAAEA, presented expectations and aims and what they hoped to gain out of the mission. A comprehensive instructional manual were sent out to participants to further assist them in preparation 29th October: NAEE Day 1 The Expo orgniansers hosted a grand opening session. This was followed by a performance of a new contemporary dance group and inspection by the Governor of Ogun state and Key gov- ernment officials on the exhibition booths follow by presentations and discursion. 30th October: NAEE Day 2 Within the structure of the NAEE 2012 was the one on one session with the Executive Gover- nor of the state. This is a feature for the event that would lead to more fruitful, open dialogue and better understanding of the market. And one on one session with the Council for Renew- able energy of Nigeria (CREN) and the Délégation Départementale de l’Elevage, des Peche des Industries of Cameroon. The first of these sessions took place on 29th October in the afternoon with CREN. During this time, Secretary General gave valuable insight into the problems of energy demands and production and what the IPP legislation ment for investors Chairman SAAEA Mr. Smith presented his paper of South Africa as the gateway for Renewable energy into Africa, He pointed out the practical matters that Request for proposals should take into account and other participants presented their products. A number of questions were received from the audience that highlighted concerns about what the government is doing and the need for forging investor and manufacturers to consider the Nigeria market. 31st October: NAEE Day 3 31st October was the last day of exhibition as our physical presence does signal credibility. We built more on support from DTI an impressive booth was designed and built for the purposes of meeting space, a home-base for information, brochure stand, DVD displays and informal gath- erings. Our thanks go to the staff of Centre for Export Development who managed this area so ably. It was time well invested and much appreciated.
  10. 10. It was encouraging to see other major Players from like DASOL from China, Inenergy from Germany, ATEF Group of Companies from Azerbaijan, BAM Tech from France and Iskra Zascite from Slovenia were all at the expo. Site inspections We embarked on site inspections of the capital city Abeokuta was organised. First was the only 7 MW renewable energy plant in the state. Second was the ancient Olumo rock which is one of the most popular tourism attraction in the state. Achievements and developments Current Automation: Franchise Opportunities Negotiations are underway Agama Energy – appointed an agent in Nigeria Solaire Direct Technologies – finalising process of exporting to Nigeria Calliper Consulting Engineers – Discussing possibility of building a Green economy busi ness park Black Jills Energy – working with the first lady on women empowerment projects EEU Diverse Business Consulting – Secure an order Zepto SA – working on an order for 1000 units of their solar powered tablets Areas for improvements Each company must have a least 2 candidates at the fair to ensure maximum benefits are exploited. Logistics must be finalised at least 2 weeks before the trade fair. We must confirm public holidays in advance We must study the local currency exchange rate in advance.
  11. 11. Conclusion & Outcome The delegation discuses trade opportunities in areas including solar plant, including Solar, Biodiesel, waste to energy and development of the Green economy. We were also informed about investment opportunities in a number of other states Combine. The members of the delegation expressed their experience that taking part in a business mis- sion is a very informative way to explore business opportunities in Nigeria, and to meet new potential business partners. Taking part in a mission was also useful for those companies already doing business with Nigeria, since it gives them an easy option to meet their Nigeria trade partners personally. Because of the success of the 2012 mission, it is our intention to organise another trade mis- sion to Nigeria in future as follow up on the Memorandum of Understanding with Ogun State government to provide 100 MW renewable energy for the state. An informative video film on DVD about the trade Mission has been aired on DSTV click Africa programme. As the coordinators, would like to thank the DTI and those companies who committed them- selves to this programme which was time consuming and challenging but worthwhile.
  12. 12. “Infrastructure is the lifeblood of economic development and is critical to Africa’s transformation. The needs are huge, the fi- nancing is available, but the risks are high.The world is finally starting to realize that if we don’t address energy poverty, we are going to fail in our efforts to achieve the Millennium Development Goals (MDGs). Propelled by high growth and an expanding middle class, Africa has entered a new chapter in its history; its countries must change the way they relate to the rest of the world and to each other, South African President Jacob G. Zuma “Infrastructure is the lifeblood of economic development and is critical to Africa’s transformation. The needs are huge, the fi- nancing is available, but the risks are high.The world is finally starting to realize that if we don’t address energy poverty, we are going to fail in our efforts to achieve the Millennium Development Goals (MDGs). Propelled by high growth and an expanding middle class, Africa has entered a new chapter in its history; its countries must change the way they relate to the rest of the world and to each other, South African President Jacob G. Zuma
  13. 13. NAEE in Photos Edward Rae of Current Automation One on One with the Governor with the delegation South Africa Delegation Olly Malebane of Calliper Engineering Greg Austin of Agama Energy Discursion with Energy Adviser Delegates with the Governor Amosun of Ogun state
  14. 14. Nigeria and South Africa account for one-half of sub-Saharan Africa’s GDP, and are potentially major drivers of growth for the region as a whole. In an interview, senior economist CheikhGueye examines Nigeria’s and South Africa’s economic linkages with the rest of the region. With an expected annual growth of 5% in 2012-2013, sub-Saharan Africa continues its transformative journey from a developing continent to a hub of global growth. According to the World Bank, almost half of Africa’s countries have attained middle-income status. At the same time, the continent’s positive outlook is threatened by fluctuating commodity prices, rising inequality and youth unemployment. To build on its achievements, Africa’s leaders need to strengthen the continent’s competitiveness, foster inclusive growth and build resilience in a volatile global environment. Accelerating economic diversification, boosting strategic infrastructure and unlocking talent are critical success factors in this new leadership context. World Economic Forum 2013 Africa is the third bright spot. “The IMF has revised its outlook for the continent upwards to 5.7%,” Trevor Manuel, Minister of the National Planning Commission (NPC) of South Africa. “We are commodity dependent and vulnerable to the shocks of the global economy. To keep momentum, we have to manage external shocks; our buffers are weaker than in 2008. We need to go from economic growth to economic transformation and ensure growth is broad-based. We cannot remove inequalities completely, but must ensure the policy mix extends growth to the majority of the population.” Donald Kaberuka, President, African Development Bank (AfDB), Tunis “If you look at the real innovators, they are the youth. Young people are born with technology; they understand it and are comfortable with it. They can leverage the technology and innovate. Africa needs innovation that is focused on inclusiveness. Innovation based on mobile phone technology will shape Africa’s transformation.” PWC projects that Nigeria could be 13th largest economy in the world by 2050 with projected GDP of $4trillion based on a 6% annual growth rate. Omobola Johnson, Minister of Communications Technology of Nigeria Popular Quotes

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